16. The following new section is hereby inserted immediately after section 24 of the principal enactment and shall have effect as section 24A of that enactment:-
| 24A.
| | (1) Where any non-resident company carrying on in Sri Lanka any trade or business incurs in arty year of assessment commencing on or after April 1,2005 any expenditure in the nature of head office expenditure, there shall be deducted from the profits and income of such company for such year of assessment from such trade or business, a sum equal to the lesser of -
| | | (a) the amount of such expenditure ; or |
| (b) the amount equal to ten per centum of such profits or income. |
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| | (2) For the purpose of this section "head office expenditure" in relation to non-resident company and to any year of assessment means, the executive and general administration expenditure incurred by or on behalf of such company outside Sri Lanka, including expenditure -
| | | (a) comprising the aggregate of the total profits from employment of and the total cost of traveling undertaken by every employee and every other' person employed in or managing the affairs of, any office of such company outside Sri Lanka ; and |
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Sri Lanka Consolidated Acts